Only 10% of electric vehicle buyers are between the ages of 25 and 34, according to Cox Automotive. A big reason: price. Younger generations of Americans are struggling with student debt and wage stagnation at a time when more than 70% of electric car customers’ incomes are at least $100,000. The biggest competition has been in the affluent consumer market, where Tesla had an early lead and is now being challenged by luxury car makers including Porsche, which recently debuted its first electric car at an even higher price point than Tesla’s most expensive models.
But with global auto manufacturers including GM, Volkswagen, Nissan and Kia coming to market with more electric car offerings, the situation is changing.
The cost gap between electric models and gas models is beginning to shrink, according to Rachelle Petusky, the manager of research and market intelligence for Cox Automotive Mobility. And that shift is going to accelerate. “Going to be even more so the case in the next two to three years,” she said.
Between 2010 and 2016, the cost of electric car batteries went down by over 70%, lowering the average transaction cost for electric cars. Nissan LEAF prices have decreased by 2.5% since 2012, while combustion engine cars like the Nissan Maxima have increased by 7.5%, closing the cost gap.
Younger demographics are becoming more aware of the economic benefits of owning electric vehicles. The Cox Automotive survey showed 65% of Gen Z consumers said that charging an EV costs less than fueling a gas car. According to the US Department of Energy, fueling an electric car costs almost half as much as a gasoline car, with a gallon of gasoline costing $2.64 on average in the U.S., and an electric eGallon costing $1.24.
Read more here
Join us November 12-15 for the Property Portal Watch Conference Madrid 2019.